Keppel, Sovico Group in talks for new undersea cables: Sources

One plan under discussion reportedly involves laying cable to directly link Vietnam, S'pore

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HANOI - Singapore asset manager Keppel and Vietnamese conglomerate Sovico Group are discussing plans for new undersea fibre-optic cables that would boost the region's data centre industry, people familiar with the discussions said.

South-east Asian countries, a major junction for cables connecting Asia to Europe, are seeking to expand their networks to meet booming demand for artificial intelligence (AI) services and data centres.

Vietnam alone plans to have 10 new sub-marine cables by 2030.

Under one plan under discussion, a cable would be laid to link Vietnam directly with Singapore, five people directly involved or briefed on the matter said.

It would cost US$150 million (S$202 million), according to one source with direct knowledge of the talks.

This option is favoured by Sovico, but talks with Keppel on the direct cable are in flux and no agreement has been reached yet, two sources with direct knowledge said.

They added that Keppel prefers a more ambitious cable plan involving a consortium of investors.